by Seth Hemmelgarn

San Francisco's Maitri hospice has been exploring with the
city's health department the idea of it taking over clinic space at the
nonprofit.

The location, at 100 Church Street, was recently vacated by
the AIDS Healthcare Foundation, which had run a pharmacy and Out of the Closet
thrift store there until becoming embroiled in rent-related lawsuits. Maitri, which
provides 24-hour residential care to people living with AIDS, owns the
building. Settlement agreements have been reached in both cases.

In a recent interview, San Francisco Health Director Barbara
Garcia said the agency was possibly interested in opening a primary care clinic
in the space.

"We have been exploring it. It is not a done
deal," she said. "Conversations are still going on."

The health department is exploring whether to expand its
primary care services in the city's gay Castro district. Establishing a clinic
in the area could provide services to people enrolled in the city's Healthy San
Francisco affordable insurance program or those on Medi-Cal, the publicly
subsidized health insurance program for low-income people overseen by the
state.

"The question is still out on whether or not we have
enough patients to fill that goal," said Garcia.

Maitri officials approached the health department this fall
about taking over the former AHF clinic since it is already built out and would
not require much structural work to prepare the space.

"There was already a clinic there so it is a turnkey
space. We would not have to spend a lot of capital dollars on it," said
Garcia.

Yet Garcia stressed the department is not ready to commit at
this time and has encouraged the hospice officials to talk with other health care
providers that are also looking to expand.

"We have had some conversations but have not signed on
the dotted line," she said. "They are looking to other people to see
if other people are ready to do it today. We haven't signed any lease
today."

In an email November 25, Maitri Executive Director Michael
Smithwick said, "I can confirm that we have been in preliminary discussion"
with Garcia and other health department staff "regarding their interest in
potentially renting all or a portion of the 7,400 square foot ground floor
commercial space ... . I can also confirm that we are in discussion with other
prospective future tenants interested in that space as well."

Smithwick said he couldn't provide more information but
"I expect to be able to share more openly with you in early December."

Lawsuits settled

Maitri filed an unlawful detainer complaint against AHF,
which is based in Los Angeles, in June, claiming that the foundation didn't pay
rent from September 2013 to just days before the lawsuit was filed.

In a response filed in September, AHF said it paid about
$184,000 due in rent June 24, a figure almost $80,000 lower than what Maitri
said it was owed. The settlement was filed in San Francisco Superior Court in October.

Another lawsuit in which Maitri makes similar rent claims
against AHF settled in November.

Smithwick has declined to share details on the settlements.

In a November 21 email, he said, "While we have reached
a settlement agreement," in the lawsuit settled that month, "the
final written agreement has not yet been signed ... so I'm going to need to
refrain from any public comment at this time related to the space or the
settlement associated with it."

Dale Gluth, AHF's Bay Area regional director, said Tuesday,
"I can tell you we did settle, but that's all I can tell you."

Besides the former Church Street pharmacy, AHF also has
another pharmacy on 18th Street in the Castro. The foundation has moved the
Church Street pharmacy to the 18th Street location, and it's opened an HIV
treatment center at 518 Castro Street.

AHF has sued the city and District 8 Supervisor Scott Wiener
over whether that location should be subject to formula retail rules. The
lawsuit is pending.